Lloyds TSB has revealed details of its £12.2bn takeover of struggling rival Halifax Bank of
The deal, which is subject to shareholder agreement and ratification from the FSA, creates a banking giant with around a third of the mortgage and savings markets.
Jointly the banks control 28% of
According to HBOS’s last results, 40% of its £117bn corporate loan book – or £47bn – is allocated to the real estate sector. The bulk of that is commercial, with around £3.5bn lent to housebuilders.
The partnership will be headed by Lloyds TSB’s current chairman and chief executive.
Analysts have estimated that as many as 40,000 jobs could be lost from the banks’ combined 145,000 staff.
There will also be “elimination of branch duplication” in the retail arm and a “consolidation of head office functions”, including human resources, finance and legal departments.
Business secretary John Hutton confirmed the government would push through the merger to “ensure the stability of the
